Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Dmitriy Gurkovskiy

The Pound’s major problem right now is the anticipation of the Brexit. Everything is ready and the United Kingdom may start the procedure of exiting the European Union at any moment before January 31st. however, London decided to wait for the exact date.

The statistics published last week showed that the Retail Sales in the United Kingdom lost 0.6% m/m in December after reducing by 0.8% in the previous month. Consumers can’t or don’t want to increase their expenses before the country starts the exiting procedure. It’s another signal that the country’s economy is looking pretty weak and the Bank of England may have to decide on helping it much earlier than the regulator planned based on its conservative approach.

This week, there will be some interesting numbers on the British labor market in November. Most likely, the Average Earnings Index hasn’t increased since November 2019 and that’s bad news for the Pound.

Stay tuned to the RoboForex Blog for exclusive financial forecasts, professional expert analysis, how-to articles and more.

As we can see in the H4 chart, GBP/USD is moving downwards; it is forming the fifth wave with the target at 1.2885. Possibly, today the pair may consolidate around 1.3000. Later, the market may break this range to the downside and then continue falling to reach the above-mentioned target. After that, the instrument may form a new ascending structure towards 1.3100. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving downwards. After the line breaks 0, the price may boost its decline.

In the H1 chart, GBP/USD is forming another descending wave towards 1.2930. After reaching it, the instrument may start a new correction to return to 1.3000 and then resume trading downwards with the target at 1.2885. Later, the market may form one more structure to the upside to reach 1.3050. From the technical point of view, this scenario is confirmed by Stochastic Oscillator: its signal line is moving below 50, thus indicating a strong descending tendency.

By Dmitriy Gurkovskiy, Chief Analyst at RoboForex


Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.